1. Field of the Invention
The present invention relates to the field of redemption vouchers and, more particularly, to redemption vouchers such as gift certificates that may be issued and used in conjunction with credit cards.
2. Description of the Related Art
It is well known that credit card issuers have used various programs based on credit card add-ons to motivate card holders to use their credit card accounts to purchase goods and services. At the same time, others have benefitted from the issuance and promotion of alternate forms of payment such as gift certificates to provide customers with purchasing flexibility and to promote purchasing in certain establishments. To date, however, credit card gift certificate add-ons or programs have been quite few and limited in use. As is described in detail below, such programs would allow credit card companies to provide card holders with benefits including greater gift giving abilities while allowing credit card issuers to increase credit card use.
The existence and use of store-type or specific-use gift certificates is well known. Typically, such a gift certificate is issued by a store (or group of stores under common ownership) in certain face value amounts. The consumer pays for the gift certificate in advance and then gives the certificate to a recipient. The recipient redeems the certificate at the store at a subsequent time. If the certificate is lost, stolen, or simply left unused, then the value of the certificate is captured in full by the issuing store (since it was paid for in full in advance). If a customer purchases something of lower value than the value of the gift certificate, the difference is usually paid to the buyer in the form of a store credit or cash. If the purchase is for more than the value of the gift certificate, the buyer makes up the difference in cash.
Some malls offer mall-wide gift certificates which can be used at any store in a particular mall. Typically, these certificates are standard commercial checks with the mall checking account number printed thereon. Usually, any store in the mall accepts the gift certificate because it can be deposited in the same manner as a personal check. Typically, the mall takes the money from customers and places such funds in a checking account to "back-up" or cover the gift certificate check.
Credit card companies have offered a few, limited use programs combining credit cards with gift certificates. These include the AMERICAN EXPRESS GIFT CHECK program, the AMERICAN EXPRESS "BE MY GUEST" program, loan checks, reward programs, and convenience checks.
The AMERICAN EXPRESS GIFT CHECK program allowed card holders to purchase so-called pre-paid gift checks in certain specified denominations by either paying for them in cash or some equivalent or by charging them to their AMERICAN EXPRESS accounts. Once paid for and issued to a card holder, the card holder was able to give a gift check to a recipient who, in turn, could redeem the gift check wherever AMERICAN EXPRESS traveler's checks were accepted. Unlike credit cards, however, gift checks issued by AMERICAN EXPRESS clear like conventional traveler's checks. And, like the gift certificates mentioned above, gift checks bear a face value that is specified by the customer who purchased the gift checks at the time of purchase, are paid for in advance of their redemption, and clear as traveler's checks and not as credit card charges.
The AMERICAN EXPRESS "BE MY GUEST" program, unlike the gift check program mentioned above, is one that involves a variable-value gift certificate known as a "BE MY GUEST" certificate. This gift certificate entitled a recipient to a dinner at a participating restaurant at a card holder's expense. The certificate is accompanied by a pre-filled out AMERICAN EXPRESS charge slip with a designated value and with the card holder's credit card account number. The card holder must obtain the certificate from AMERICAN EXPRESS credit cards by expressly requesting the same and is charged the full designated value when the certificate is used or presented to a participating restaurant. The use of such BE MY GUEST certificates are limited to particular restaurants that accept AMERICAN EXPRESS credit cards. The problem with this type of a gift certificate is that the gift recipient can see the giver's AMERICAN EXPRESS account number. This "security problem" is a general shortcoming of most credit card "linked" instruments.
In addition to the gift checks and the BE MY GUEST certificates discussed above, some credit card companies have issued "forced" loan checks. Such loan checks may be distributed to credit card customers through the mail on an unsolicited basis. They may also be included as inserts or attachments in customers'monthly billing statements. The checks often have face values or amounts up to thousands of dollars and are typically made payable to the account holder. These checks are generally intended to be deposited by a credit card customer in his or her personal bank account. As loan checks typically are made payable to the credit card holder, they act as instant loans or cash advances that later appear as charges on the credit card customer's account or monthly billing statement. The credit card customer is liable for the value of a particular check should he first choose to endorse the check to make it negotiable and then to cash it with or present it to his banking institution. If the credit card customer desires, he may simply destroy or discard the check and bear no liability. Often, unsolicited loan checks bear the credit card issuer's bank account number and the credit card customer's credit card account number. As loan checks are typically deposited in card holder bank accounts or in pre-designated accounts, loan checks may not be given as gifts to others.
In addition to checks and other certificates known to be issued to credit card customers, other credit card issuers have instituted reward programs of the type illustrated by the General Electric Company's GE Rewards Visa Credit Card program. That program allows a credit card customer to automatically receive $5 rebate certificates for every incremental level of charging he or she does (e.g., for every $100 in charging, the credit card holder would receive a $5 rebate certificate). The rebate certificates are automatically included in the credit card customer's monthly billing statement in the form of laser printed (lasered) vouchers which may include the card holder's account number and which may be tendered by the card holder at previously selected retail merchants whose names are pre-printed on the vouchers. Although, GE's reward program provides credit card customers with cash-off discounts, the available outlets where such rebate certificates can be used is limited.
To provide greater flexibility to card holders, credit card issuers have issued convenience checks. Such convenience checks are well known. These checks carry indicia linking the check to a customer's credit card account and can be used by the card holder as payment in the same manner as normal personal checks. The difference between convenience checks and regular personal checks is that the former are treated as cash advances against a card holder's available credit line on his credit card instead of being deducted from money on deposit in a checking account. Large numbers of convenience checks are regularly mailed by banks and card issuers as ways to promote the creation of additional consumer charge volume and encourage consumers to build up credit card balances. Moreover, convenience checks also are used to encourage card holders to pay off and transfer balances from other credit cards they might hold.
Accordingly, the credit card add-ons and programs described above illustrate the lack of a general use gift certificate type instrument. Applicant has recognized that such a lack of a general purpose gift certificate presents an opportunity to the credit card industry and to credit card holders. That opportunity involves combining the benefits of a gift certificate type instrument with the benefits of a credit card. That combination would result in many benefits not heretofore realized by other credit card add-on programs. For example, the combination of a gift certificate with a credit card account could result in a program wherein gift certificates are not paid for until after they are presented for redemption by a recipient thereby allowing a credit card holder to defer payment of a gift for an intended recipient. Moreover, such a combination could allow a credit card holder to receive gift certificates at his home via mail or other service since such certificates would be issued by a credit card issuer without requiring the card holder to visit a particular store or facility. Moreover, by linking the credit card and a gift certificate, the gift certificate could be processed via the credit card processing systems thereby enabling the gift certificate to be accepted anywhere credit cards are accepted. Such wide acceptance of credit card based gift certificates could allow a gift certificate to be issued by a credit card issuer and be made payable to any particular merchant or be left blank for a credit card customer to specify a particular merchant. Also, since the gift certificate and a credit card could be combined, a credit card issuer could either specify a maximum charge amount which may or may not be evident to the gift recipient or leave the same blank to allow the credit card holder to specify his own amount that he or she feels comfortable giving to an intended recipient. Moreover, a combination of a gift certificate and a credit card could allow a card holder to specify an expiration date to be associated with a gift certificate thereby allowing the credit card holder to control the use of his credit card. Additionally, such a combined system could allow a card holder to specify gift denominations different from standard dollar amounts or dollar maximums thereby allowing the card holder to issue an unlimited type gift capped only by the card holder's available credit.
In addition to the benefits mentioned above, a system combining gift certificates with credit card accounts would allow credit card issuers to realize increased credit card use as card holders would have greater spending and card use abilities. Such card usage abilities could be offered in the context of an add-on program wherein service fees may be charged for activation of gift certificates, cancellation of gift certificates, and processing of gift certificates. Accordingly, credit card issuers would, in turn, realize new and additional revenue streams and increased good will associated with providing greater card member benefits.